African Export-Import Bank (“Afreximbank” or the “Group”) (www.Afreximbank.com) has released its consolidated financial statements for the six months ended 30 June 2024.
The Group’s results for the six months period once again demonstrate resilience amid challenging macro-economic conditions. The Group delivered solid year-on-year growth across key performance metrics and an increase in shareholder value.
Net Interest Income for H1’2024 grew by 24.5% to US$826.2 million, compared to US$663.6 million for the same period last year (H1’2023). The increase was driven by a 31.42% increase in interest income to US$1.5 billion, on the back of growth in the Bank’s portfolio of Loans and advances. The Group’s performance for the period reflects that of the Bank as subsidiary entities are still in their early stages of development, with the notable exception of the Funds for Export Development in Africa (FEDA) which contributed US$11 million to the Net Interest Income of the Group, compared to US$9.1 million at H1’2023.
The Group’s total fees and commission income for H1’2024 increased by 20.07 percent to US$71.2 million, compared to US$59.2 in H1’2023.
During the period, the Group continued to make strategic progress in its mission to develop African trade, including deepening ties with Caribbean countries and the broader diaspora. Operating expenses increased by 30.38 percent, to US$152.8 million, compared to US$117.2 million at H1’2023 reflecting higher personnel and administrative costs to support the initiatives of the Bank and subsidiaries amid high inflationary external environment. The Cost to Income Ratio remained low at 16.98 percent, well within the strategic upper limit of 30 percent.
The winding down of the Ukraine Crisis Adjustment Trade Financing Programme for Africa (UKAFPA) facilities as African economies demonstrated resilience, and adapted to the crisis, resulted in a marginal decline in Loans and advances from US$ 26.7 billion to US$ 26 billion.
Cash and cash equivalents closed the period at US$3.9 billion (FY 2023: US$5.6 billion), while the Liquid Assets to Total Assets ratio remained high, at 12.50 percent.
The Group’s Shareholders’ Funds rose by 1.64% to US$6.2 billion compared to US$6.1 billion at FY 2023, reflecting growth in internally generated Net Income of US$407.7 million. The Bank’s Capital Adequacy Ratio remained strong at 25%.
At the Afreximbank Annual General Meeting held in Nassau, The Bahamas in June 2024, shareholders approved a dividend of US$264.6 million and other appropriation amounting to US$50 million to support concessionary funding.
Mr. Denys Denya, Afreximbank's Senior Executive Vice President, commented:
“Afreximbank Group reported a strong performance in the first half of 2024, delivering robust financial results and making significant strides in its implementation of the 6th Strategic Plan – Extending the Frontiers. The Bank continued to demonstrate its commitment to enhancing Africa’s economic resilience, by helping countries mitigate the negative effects emanating from the external challenges, advocating for the Continent’s interests on the global stage, and contributing to “Global Africa” by connecting the continent with its global diaspora through strategic interventions.
The strong results achieved during this period were delivered against a backdrop of a continuously challenging and evolving macro environment, reflecting the effectiveness of the Group’s strategy and its commitment to operational excellence. Leveraging its healthy financial position, the Group will continue to play a central role in the implementation of the African Continental Free Trade Area (AfCFTA) by fostering accelerating economic integration, industrialisation and trade across the continent.
He indicated that Group Management remained focused on maintaining healthy and strong liquidity position, sound asset quality while strengthening Afreximbank’s institutional capacity to support Africa’s growth and development aspirations.”
Highlights of the results for the Group and Bank are shown below:
|
Financial Performance Metrics |
HY-2024 |
HY-2023 |
|
|
Gross Income (US$ billion) |
1.47 |
1.12 |
|
|
Operating Income (US$ million) |
899.86 |
732.17 |
|
|
Net Income (US$ million) |
407.66
|
345.6 |
|
|
Return on average equity (ROAE) |
12.95% |
12.19%
|
|
|
Return on average assets (ROAA) |
2.52% |
2.36% |
|
|
Cost-to-income ratio |
16.98% |
16.01% |
|
|
Financial Position Metrics |
HY-2024 |
FY2023 |
|
|
Total Assets (US$ billion) |
31.1 |
33.47 |
|
|
Total Liabilities (US$ billion) |
24.9 |
27.35 |
|
|
Shareholders’ Funds (US$ billion) |
6.2 |
6.12 |
|
|
Net asset value per share (Bank) |
US$64,580 |
US$63,858 |
|
|
Non-performing loans ratio (NPL) |
2.52% |
2.47%
|
|
|
Cash/Total assets |
12.50% |
16.80% |
|
|
Capital Adequacy ratio (Basel II) |
25.13% |
23.77% |
|
Distributed by APO Group on behalf of Afreximbank.
Media Contact:
Vincent Musumba
Manager, Communications and Events (Media Relations)
Email: press@afreximbank.com
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About Afreximbank:
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. For 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa's trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank is setting up a US$10 billion Adjustment Fund to support countries effectively participating in the AfCFTA. At the end of December 2023, Afreximbank's total assets and guarantees stood at over US$37.3 billion, and its shareholder funds amounted to US$6.1 billion. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody's (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure (together, “the Group”). The Bank is headquartered in Cairo, Egypt.
For more information, visit: www.Afreximbank.com
FORWARD-LOOKING STATEMENTS:
African Export-Import Bank (Afreximbank) Group makes written and/or oral forward-looking statements, as shown in this release and other communications, from time to time. Likewise, officers of the Bank may make forward-looking statements either in writing or during verbal conversations with investors, analysts, the media, and other members of the investment community. Statements regarding the Bank's strategies, objectives, priorities, and anticipated financial performance for the period constitute forward-looking statements. They are often described with words like “should”, “would”, “may”, “could”, “expect”, “anticipate”, “estimate”, “project”, “intend”, and “believe”.
By their very nature, these statements require the Bank to make assumptions subject to risks and uncertainties, especially uncertainties related to the financial, economic, regulatory, and social environment within which the Bank operates. Some of these risks are beyond the control of the Bank and may result in materially different results from the expectations inferred from the forward-looking statements. Risk factors that could cause such differences include regulatory pronouncements, credit, market (including equity, commodity, foreign exchange, and interest rate), liquidity, operational, reputational, insurance, strategic, legal, environmental, and other known and unknown risks. As a result, when making decisions with respect to the Bank, we recommend that readers apply further assessment and should not unduly rely on the Bank's forward-looking statements.
Any forward-looking statement contained in this presentation represents the views of management only as of the date hereof. They are presented to assist the Bank's investors and analysts to understand the Bank's financial position, strategies, objectives, priorities, and anticipated financial performance in relation to the current period, and, as such, may not be appropriate for other purposes. The Bank does not undertake to update any forward-looking statement, whether written or verbal, that may be made from time to time by it or on its behalf, except as required under applicable relevant regulatory provisions or requirements.
Source: Apo-Opa
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